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SEC Officially Withdraws Lawsuit Against Binance
After nearly two years of legal proceedings, the United States Securities and Exchange Commission (SEC) has formally withdrawn its high-profile lawsuit against Binance, the world’s largest cryptocurrency exchange. This pivotal development marks one of the final actions in the US government’s recent regulatory battles against leading crypto firms.
Joint Request Brings Closure to Legal Case
Both the SEC and Binance submitted a joint request to terminate the lawsuit. Following a 60-day pause earlier this year, US courts have now accepted the request. As a result, the case is officially closed, and the SEC cannot pursue further action regarding this complaint. This case, originally initiated in 2023, accused Binance and CEO Changpeng Zhao of operating an unregistered crypto exchange in the US and misleading investors.
Binance Responds, Citing Industry Milestone
In a statement to Reuters, Binance described the decision as a "historic moment." The exchange also expressed gratitude to Paul Atkins, a former SEC Commissioner, and to the Trump administration for fostering innovation instead of imposing restrictive regulations on the cryptocurrency sector.
Background: Binance's Legal Challenges
Previously, Binance reached a separate agreement with the US Department of Justice, agreeing to pay a substantial $4.3 billion in fines. CEO Changpeng Zhao pleaded guilty to violating anti-money laundering regulations, paying a personal fine of $50 million and serving a four-month prison sentence.
A Shift in US Cryptocurrency Policy
The withdrawal of the SEC lawsuit is the latest sign of the Trump administration’s supportive stance towards cryptocurrency. In April, the Justice Department disbanded a special anti-crypto fraud unit, and investigations into Coinbase and Robinhood by the SEC were also terminated earlier this year. Additionally, Donald Trump has backed the creation of a "Strategic Crypto Reserve" and has welcomed investors betting on the $TRUMP meme coin, signaling continued growth and mainstream acceptance of digital assets in the US.
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